My personal money is on it being Bernard Grey (CDM). TO leave a lucrative private sector salary for a job that pays far less than his equivalents in the private sector (barely £100K or a 1* salary) per year, then I suspect he would have had a decent bonus written in to his contract. The scale of money awarded here goes far beyond that awarded to any CS I've ever heard of.
I wonder if his old mate Liam signed off the deal when appointing him - is this a minor political scandal emerging?
In the private sector the great majority of bonuses are work related. My big boss gets a bonus pool to distribute among the department. That's based on profit: no profit = no bonus pool. He then looks at individual performance. If you perform well - you get a good bonus. If you go through the motions - you get nothing.
Bonuses should be for exceptional performance. In well run company, I would expect to see maybe 10% getting good bonuses and another 10% getting nominal bonuses. What I would not expect to see is 2/3 of the department getting bonuses.
You pay a bonus for exceptional work - you don't pay bonuses for someone who turns up and does their job. The money you get paid for doing your job is a salary not a bonus.
The Conservatives are now starting to delve into exactly what the public sector costs us. And one thing that they can chop with my compliments is guaranteed bonuses. If someone does an exceptional job they should get a bonus - otherwise they should get salary only.
At a very simple level, we denied the CS a payrise for a fair number of years, and then introduced a 'bonus' system that was significantly less than a payrise, and gave it to most people.
What amuses me the most is when DE&S becomes a trading fund, you can bet your bottom dollar CDM will get far bigger bonuses than that being reported. Indeed, I suspect most of the Armed Forces management chain (say, from PO/Sgt/Crab equivalent to 4*) would be due a bonus as well - same output for a reduction by upto 15% in costs is not insignificant in any line of business.....
As a serving Civil Servant, I do not disagree with you - I have never received a bonus of any description, despite receiving appraisals which would seem to suggest that I perhaps should; I do, however, receive what I consider to be a relatively generous salary which puts me into the 40% tax bracket. And, of course, a final salary pension, although my contributions seem to have increased quite sharply since Xmas. The problem with the bonus culture is twofold: far too many of the Senior Civil Service seem to experience avarice beyond Cresus upon promotion to Grade 7 and above - they have completely bought into the 'because I'm worth it culture' that seems to pervade Home Office senior management - and far too many of the Department's junior staff are very poorly paid, especially AAs and AOs but also EOs who do not receive an operational allowances. A friend of mine (a former EO in UKBA N.B. EO not Immigration Officer etc.) used to receive an annual bonus of 600 notes for exceptional performance in detention management - in reality, she saved the Department thousands by performance monitoring the contract with G4S. Her bonuses, to her, at least were more than a nice-to-have - they helped her pay for the kind of wedding that she wanted. Her far-from-generous salary (less than a Sgt's) was living proof of how the most junior management grade was undervalued. Junior Civil Service salaries started to fall behind under Blair and Brown - the bulk of the pay rises went to Assistant Director's and above, in the mistaken belief that this would somehow drive up performance. It didn't.